The benchmark for wastage in the bakery industry in India is estimated to be between 10 and 12 per cent. There is a need to manage business effectively. This was stated by H A Mishra, chairman and managing director, Foodesign Hospitality Systems Pvt Ltd, during his presentation, titled Food cost control and audit in bakeries, which was among the highlights of the second day of Bakery Business 2017, currently underway at MMRDA Grounds, Bandra Kurla Complex (BKC), Mumbai.

“Bakery business is a very serious business, and it is a very important part of the hospitality industry,” he added. Maintaining effective food and beverage (F&B) cost management helps in optimising profitability, operational efficiency and enhancing standards. Effective cost control will result in an increase in profitability, operational flow, purchases, stores, production and revenue. F&B cost is computed by dividing the net F&B consumption by the net F&B revenue. There are two methods to arrive at the net F&B consumption. One is gross issues and the other is the opening stock.

Mishra, whose presentation also focused on supply chain management, operation analysis from procurement to sales, establishing systems and operation process audits and 360-degree F&B cost management services, mentioned the important ways to control the costs and reduce the inventory levels in proportion to the revenue.

These include ordering planning on the basis of the historic trends; price negotiation and effective purchases; control process; standard receipt costing; implementing standard purchase specifications, stringent monitoring of returns and leftovers, and conducting surprise audits and checks.

Another seminar at the event was titled Impact of Goods and Services Tax (GST) on the bakery industry. It was conducted by the Maharashtra Bakers’ Association. Shilpi Gupta of Chocodezire, a visitor, stated that the event was really good for bakery and confectionery players. “We get to see new products and machinery,” she added.